Your Living Trust and Planning a Revocable Living Trust with Abacus Wills & Trusts

Living Trusts by Abacus

Created by you, a living trust is a legal document that is made during your lifetime. Similar to a Will, a living trust highlights what you would like to do with regards to your assets, heirs and any dependents you may have (children under the age of 18 or an elderly parent or grandparent for example). However unlike a Will, which only comes into effect after you die, a living trust bypasses the probate process and your appointed successor trustee (the person who takes over your position as trustee) will carry out the instructions you have documented in your living trust, on your behalf.

You may be wondering why you would need a Living Trust rather than a simple Will. If so, consider the following scenario.

1. Jane and John are married. They have Child A and B together. Jane and John have simple mirror Wills that leave everything to each other and then equally between their two children.

2. Jane dies. John inherits Jane’s entire estate.

In time, John marries Jill and they go on to have Child C. John and Jill have new Wills drawn up. They leave everything to each other and then equally between the three children.

Under this arrangement, part of Jane’s estate is therefore now being left to Jill, who she had never known, and Jill’s child. Jane’s own children are therefore losing out of a portion of Jane’s estate.

In time, Jill marries Bob and they go on to have Child D. Jill and Bob have new Wills drawn up. They leave everything to each other and then equally between Jill’s two children, Child C and Child D.

Under this arrangement, Jane’s entire estate is now being left to people she had no connection with, and her own two children have been excluded entirely. John’s estate will now only benefit his youngest child, Child C, and will also benefit Child D, with whom he has no relationship.

A Living Trust is the ideal solution to avoid this, or a similar eventuality. How you divide your estate is an important decision, and one which many people put a lot of thought into to ensure they are behaving fairly and that the correct people are benefitting. However, as demonstrated above, our lives and relationships are becoming increasingly complicated and, as we cannot predict what the future will hold, it is important to protect our families come what may.

At Abacus Wills and Trusts, we ensure your assets stay within your bloodline, or as per your intended wishes, and provide you with a bespoke service to ensure that your Living Trust is created to suit you

Planning a Revocable Living Trust made easier with Abacus Wills & Trusts

Due to the nature of a living trust, it is particularly appropriate for those who have complex financial or personal situations, like a large amount of assets or a blended family. A living trust ensures that your assets stay within your bloodline (or as per your intended wishes) and will not form part of your spouse’s direct assets, which could be used for future marriages and children with whom you bear no relation to. Your assets remain in the trust for beneficiaries only.

A revocable living trust, allows you to retain control of your assets as the trustee and be able change the living trust as circumstances in your life change, such as remarriage or more children. You are also able to revoke the trust itself. Though you retain control of your assets, they themselves are transferred from your ownership, into the ownership of the trust.

Irrevocable Living Trusts

Unlike a revocable living trust, an irrevocable living trust allows you to permanently and irrevocably give away and relinquish control of your assets during your lifetime. Once an irrevocable living trust is made, the assets given away will also no longer form part of your estate (and will not be subject to estate taxes). Due to the nature of this form of living trust, they are rarely used and should be carefully considered.

At Abacus Wills and Trusts, we can help you to ensure that your assets stay within your bloodline (or as per your intended wishes) and provide you with a bespoke service to ensure that your Living Trust is created to suit your needs and requirements. Our specialists are able to visit you seven days a week in the comfort of your home to make the process even easier for you.